Treasurys fall as stocks, dollar eyed

U.S. consumer spending solid in August

RachelKoning

CHICAGO (CBS.MW) - U.S. Treasurys finished Monday lower, as the market eyed stock gains and as the benchmark 10-year yield's test last week of 4-percent proved tough to pierce anew.

Most traders characterized the action as thin, with the quarter drawing to a close and most positions locked in. Many bond participants have already pocketed the market's six-week rally.

A benchmark 10-year Treasury finished U.S. trade down 19/32 at 101 13/32 to yield
TNX, +0.63%
4.07 after closing near 4 percent at the previous session.

Technology shares paved the way for the broader stock market. See Market Snapshot.

The dollar fell to a new three-year yen low and three-month euro year. See Currencies.

Treasurys closed last week having posted six straight positive weekly gains, as measured by declining yields, as the market readjusted for expectations the Federal Reserve will hold interest rates at low levels for some time.

The market began the day under mild pressure in part as a report on consumer demand served as a reminder the United States is poised for stronger sustained growth in coming quarters.

Real consumer spending (adjusted for inflation) increased 0.5 percent in August, the fourth straight robust month of spending. Get the full story.

The week brings a full slate of economic data, capped by Friday's jobs report. Slack hiring remains an important blemish on the recovery and has been cited by the central bank as a reason to keep borrowing accommodative. See Economic Preview.

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